One of many ringleaders of Plus Token is now dealing with prison costs in China. Plus Token is likely one of the largest apparent scams within the cryptocurrency trade’s historical past.
In line with local media, Zhou will face public prosecutors within the Courtroom of Jianhu County, Yancheng Metropolis, Jiangsu Province. Because the native authorities solely equipped Zhou’s household identify, at press time we are able to’t verify precisely which Zhou this refers to.
Zhou reportedly publicized and promoted the PlusToken pockets App, a so-called crypto forex monetary administration utility, by way of Wechat and different avenues over the web.
By registering 4 totally different accounts with SIM playing cards within the pockets, he allegedly lured greater than 1.9 million folks into the pyramid rip-off.
A pyramid Ponzi scheme
In line with native authorities, the PlusToken pockets disguises itself as a cryptocurrency monetary administration app, however permits criminals to recruit members by promising excessive returns baked on the quantity of different buyers they’ll pull in.
Native police mentioned that they acquired studies from the general public relating to the rip-off as early as final yr, explaining:
“Within the identify of offering a cryptocurrency appreciation service, the platform falsely claims that it has the perform of mining cryptos, and requires members to pay sure worth of cryptocurrencies reminiscent of Bitcoin, Ethereum, EOS, and so on., in order to acquire excessive static earnings.”
Different criminals concerned
As Cointelegraph reported beforehand, members of the Chinese language police touched down in Vanuatu and detained six people concerned with the PlusToken undertaking and extradited them again to mainland China final yr. It could possibly be the largest crypto rip-off ever, with an estimated lack of round $2.9 billion.